Airawat Indices Pvt Ltd, a joint venture company founded by former head of Sebi M Damodaran and Decimal Point Analytics, has launched a new ATOM index comprising 30 mid-cap listed companies.
The company said in a statement that Atom (Ayrawat Touchstone Midcap Index) is an objective index designed to serve investors seeking to invest in “well-run mid-cap companies”.
The joint venture selected these 30 mid-cap companies from AMFI’s (Association of Mutual Funds of India) list of 150 mid-cap stocks as the starting point for its scoring methodology.
Damodaran, the former head of UTI and IDBI, also announced the Corporate Governance Index for Medium Enterprises.
The methodology for selecting 30 companies in ATOM captures the standards of financial quality and corporate governance for the AMFI midcap world, she said, adding that the index is reconfigured every six months based on revisions AMFI makes to its list of 150 midcap companies.
Speaking at the launch of ATOM, Damodaran said, “The middle space is traditionally believed to be risky and full of dodgy companies. However, we decided to debunk this myth and found a way to systematically identify well-governed companies to create ATOM.”
He added that with the rapid growth of asset management services in India, having a few index providers may not be enough.
“Irawat, as a new entrant, is committed to finding new and innovative segments in the markets and creating indices around which investors can build unique portfolios,” he said.
Ashutosh Bishnoi, Airawat advisor and former board member of the Mutual Funds Association of India, said ATOM represents the best quality of mid-cap companies in India.
“On a compound annual growth rate basis, 150 mid-cap stocks have outperformed over the past five years by more than 500 basis points yet have significantly underperformed over the past year,” he said.
Decimal Point Analytics serves capital markets institutions in Europe and the United States from its offices in London, New York, Gift City, Nashik and Mumbai. The statement said that the decimal point already deals with the management of more than 400 indices for global index companies.
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